Seoul – Kumho Asiana Group chairman Park Sam-koo has secured nearly a trillion won (€800 million) to buy back a 42% stake in Kumho Tire, according to a 9 Feb report by the Korea Times.
Citing Kumho officials, the report said Park had secured the funds “from several financial investors and business associates” to buy the 42.1% stake in Kumho Tire, which is currently held by a number of creditors including Korea Development Bank (KDB).
Park, according to the official, is ready to exercise his right to buy back the group’s tire unit as soon as he is notified by creditors about the sales price.
As previously reported by ERJ, Kumho creditors launched the company’s sale in November last year and chose Chinese tire-maker Double Star Tire as their selected bidder earlier in January.
The Chinese tire maker reportedly offered around 1 trillion won, outbidding other firms – said to include Shanghai Aerospace Industry Co. (SAIC), Jiangsu GPRO Group Co. of China and India’s Apollo.
Park, however, can exercise a right to buy back the stake at the highest bid price.
According to the Korea Times, creditors plan to sign a stock purchase agreement with Double Star later this month and inform Park about the details. Once notified, the Kumho chairman has 30 days to exercise his buy-back right.